Forex news for New York trading on October 23, 2019:
- EU probably won't make a decision on Brexit extension until Friday - report
- France's Macron demands Nov 15 Brexit deadline - report
- Irish foreign minister: Thinks Brexit extension will be a flexible one
- US weekly crude oil inventories -1699K vs +3000K expected
- Eurozone advance October consumer confidence -7.6 vs -6.7 expected
- US August FHFA house price index +0.2% m/m vs +0.3% expected
- Canada August wholesale trade sales -1.2% vs +0.3% expected
- Trudeau confirms Canada will be moving forward with TransMountain pipeline
Markets:
- Gold up $4 to $1491
- WTI crude up $1.32 to $55.80
- US 10-year yields flat at 1.76%
- S&P 500 up 8 points to 3004
- GBP leads, JPY lags
The Brexit drama slowed as the EU figures out how it's going to react to Brexit scenarios and election results. In classic, EU fashion, they have decided to punt on the decision until Friday as France pushes for a short extension and others push for a three-month extension. Cable bottomed early in Europe just below 1.2850 and then turned higher in the latter part of New York trade to 1.2915.
The gains in cable dragged the euro higher again as they continue to trade in lockstep. There was some broader USD and JPY selling as well that kicked in late in the day as well, in part due to mildly positive risk appetite.
USD/CAD benefited from a rally in oil prices on the tighter US inventory report. USD/CAD in set to finish at the lows of the day and is testing the pre-election low of 1.3071 and threatening a fresh three-month low.
The other commodity currencies were also bid and USD/NZD continues to outperform and squeeze the relatively large short position.
USD/JPY held a steady bid up to 108.70 from 108.30 early in Europe. The weekly high of 108.72 is nearby, followed by last week's high of 108.94.
